Pest Analysis - Vietnam

PESTLE Analysis: News Corp move to Digital Media.

1. Vietnam

Political – Vietnam has a one party state controlled by the Communist Party. However with their policy known as ‘Doi Moi', it marked an impressive transformation in from a central economy to a market orientated economy (Lan, 2006). This policy led to lower inflation and higher economic growth. It also provided incentive issues to attract inflow such as reducing tariffs, lowering foreign currency surrender rates and lowering the restriction barriers. Vietnam is continually achieving higher political stability and absence of violence, which was 92nd among 210 countries in 2008 (Encyclopedia of the Nations, 2008).

Economic – Vietnam has emerged as the most recent of Southeast Asia's economic success stories, posting the highest GDP growth throughout the region, and third in global average annual GDP growth, behind China and India (Lehmann, 2010). Since economic reforms, Vietnam has transformed into a vibrant economy.

Socio-cultural – Vietnam has an extremely young population with rising household incomes, which forms a very attractive consumer base. Vietnam has a population of around 90 million people, with 70% under the age of 35 (Ahmad, 2010). English is the second most spoken language in the country, combined with a literacy rate of 90% (Ahmad, 2010). This, combined with strong Confucian work ethic creates a highly capable workforce.

Technological – Internet users had reached 24 million in 2010, which accounted for 27.1% of the population of 86 million in 2010, which saw it ranked 7th among the world with proportional internet users in Asia (Internet World Stats, 2010). Strong investment into infrastructure has been coupled with tax cuts, reducing land lease and service prices, and electricity for both domestic and foreign investors (Lehmann, 2010). In terms of